[UCSB]

Hi guys, just discovered this site. Hope to be helpful to some students in the future :)

One downtown bar serves "Gaucho Gasoline," loved by UCSB students. The profit-maximizing owner of the bar knows that any given student has demand for Gaucho Gasoline shots given by p = 10 - q and non-students have demand p = 4-2q. The owner decides to sell shots in package because she can't distinguish students from non. She offers a large pack of 10 shots and small package of 2. If her MC = 2, what is the maximum price she can charge for the two packages if she wants non-students to by the small package and students to buy the large?

[paraclete]

Hi guys, just discovered this site. Hope to be helpful to some students in the future :)

One downtown bar serves "Gaucho Gasoline," loved by UCSB students. The profit-maximizing owner of the bar knows that any given student has demand for Gaucho Gasoline shots given by p = 10 - q and non-students have demand p = 4-2q. The owner decides to sell shots in package because she can't distinguish students from non. She offers a large pack of 10 shots and small package of 2. If her MC = 2, what is the maximum price she can charge for the two packages if she wants non-students to by the small package and students to buy the large?

Sorry my calculus is a little rusty we are dealing with students here, people with no money so demand is inelastic and minimal. The easy way out of the dilemma is to give a discount on production of the student registration card otherwise everyone full price

[UCSB]

This is for an upper division econ class haha, I need numbers, sorry. I'll post the answer later today actually.